EID Parry India Limited has informed the Exchange regarding 'Investment in Wholly Owned Subsidiary'.
EIDPARRY · price
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EID Parry's Board has approved shutting down the sugar refinery of its wholly-owned subsidiary, Parry Sugars Refinery India Private Limited (PSRIPL), at Kakinada with effect from March 31, 2026, as the unit is no longer structurally viable. PSRIPL has accumulated losses of around Rs. 1,406 Cr as of March 2025 and a negative net worth of Rs. 672 Cr, with Rs. 877 Cr in bank borrowings. The refinery, originally built in 2006 as a 2,000 TPD export-oriented SEZ unit, suffered from non-availability of natural gas, falling global white sugar premiums, factory accidents, regulatory shutdowns, and high finance costs. EID Parry will invest up to Rs. 610 Cr by subscribing to equity shares of PSRIPL at face value, plus give an inter-corporate loan of up to Rs. 130 Cr, to help settle liabilities. The company will need to make a provision of around Rs. 655 Cr over FY26 and FY27, and impair Rs. 46 Cr of its existing investment. PSRIPL contributed about 13.5% of EID Parry's consolidated revenue in FY25.
This is a negative near-term event — a large one-time provision of ~Rs. 655 Cr will hit earnings across FY26 and FY27, and the closure signals failure of a long-running export bet. However, the company states it has adequate funds, and shutting the loss-making unit could improve long-term profitability by removing a chronic drag on the group.